We've all heard this said: “New cars depreciate as soon as you drive off the lot.” As it turns out, there's strong data to support that claim.
The average new car loses 10 percent of its value as soon as you leave the dealership, according to Carfax. So a $25,000 car would instantly be worth $22,500 - even if you’ve only made it a mile down the road.
Things get worse after that. According to Edmunds research, the average new sedan loses a whopping $7,419 of its value in the first year of ownership. That’s more than the car loses in the next three years combined.
From a financial perspective, buying used just makes better sense. Cars last a lot longer than they once did (the average car on the road is 12 years old). If you buy a car that is just a couple years old, you’ll get a vehicle in like-new condition with modern technology and features for many thousands less.
-Buy in the “sweet spot”: Edmunds data shows you get the most bang for your buck when you buy a car in its second year and keep it for three years. You’ll buy at a deep discount and sell before too much additional value is lost.
-Consider a certified pre-owned: These gently-used and low-mileage cars have been thoroughly inspected and refurbished. Most come with a warranty lasting up to five years and 100,000 miles for further piece of mind.
-Get a vehicle history report: It helps to know your vehicle’s past. Has the car been in an accident? Is the odometer reading accurate?
If you’re ready to shop used cars, visit our Sound Ford dealership in Renton, Washington or browse our extensive inventory online. If you have questions, we’re happy to help.